Answer: 80.17 days
Explanation:
The Receivable days estimated is calculated by the formula:
= Accounts receivable * 365 / (Annual sales * Gross profit margin)
= 2,200 * 365/ (32,000 * 31.3%)
= 2,200 * 0.03644169329
= 80.17 days
The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,600 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.90 for materials and $4.40 for labor and overhead, the total cost assigned to the ending work in process inventory was: Multiple Choice $103,044 $81,468 $135,780 $86,676
Answer:
A. $103,044
Explanation:
Ending work in progress inventory = 18,600 units
Cost of equivalent unit for material = $2.90 per unit
Ending work in progress inventory i= 100% complete for material
Total cost of inventory for material = 18,600 units * $2.90 per unit
Total cost of inventory for material = $53,940
Cost of equivalent unit for labor = $4.40
Ending work in progress = 60% complete for labor
Cost of ending work in progress = $4.40 * 60% * 18,600
Cost of ending work in progress = $49,104
Total cost of ending work in progress inventory = $53,940 + $49,104
Total cost of ending work in progress inventory = $103,044
An increase in debit balances means more investing by naive investors and would be a bearish indicator.
a) true
b) false
Answer:
b) false
Explanation:
An increase in debit balances means more investing by naive investors and would be a bearish indicator.
A debit balance can be regarded as account balance that has positive balance at the left side of the account.
Some of the Accounts with debit balance are;expenses as well as
assets and losses. Some of these accounts Examples could be fixed assets accounts receivable as well as fixed assets. Some Contra accounts usually have debit balances , some of theses are;contra equity and contra liability. Typical example is the treasury stock account. bearish harami which can be regarded as candlestick chart indicator, ,that is responsible for reversal as regards bull price movement.
Down and Out Co. operates an executive placement service for corporate executives displaced by corporate restructuring. Its monthly total cost of cases is given by TC = 25 Q 1/2 + 2,500; the average cost at a caseload of 25 attempted placements per month is:
Answer:
The average cost at a caseload of 25 attempted placements per month is 105.
Explanation:
The total cost function given in the question first correctly stated as follows:
TC = 25Q^1/2 + 2,500 ................ (1)
A caseload of 25 attempted placements implies that:
Q = 25
Substitute Q = 25 into equation (1), we have:
TC = (25 * 25^(1/2)) + 2,500 = 2,625
The average cost (AC) can now be calculated as follows:
AC = TC / Q = 2,625 / 25 = 105
Therefore, the average cost at a caseload of 25 attempted placements per month is 105.
Problems and Applications Q2 Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. What is the opportunity cost of something
Answer:
$550,000
Explanation:
Based on the information given the OPPORTUNITY COST OF RUNNING THE HARDWARE STORE will be $550,000 ($500,000+$50,000), which include the amount of $500,000 which is the cost of renting the store as well as to the cost to buy the stock while the $50,000 is her salary as an Accountant, reason been that she would QUIT HER JOB as an accountant in order for her to run the store.
Therefore the OPPORTUNITY COST will be $550,000
1992 governance was introduce as
Answer:
By kingdoms the governance was introduce
If $4000 is invested at 2% interest, find the value of the investment at the end of 6 years.
An investment of $4000 is deposited into an account in which interest is compounded continuously. Complete the table by filling in the amounts to which the investment grows at the indicated interest rates.
t = 5 years
Rate per year Amount
1%
2%
3%
4%
5%
6%
Answer:
a. Value of investment at the end of 6 years = $4,504
b. Table Completion:
Rate per year Future Value Factor Amount
1% 1.051 $4,204
2% 1.104 $4,416
3% 1.159 $4,636
4% 1.217 $4,868
5% 1.276 $5,104
6% 1.338 $5,352
Explanation:
Data and Calculations:
Investment = $4,000
Interest rate = 2%
Period of investment = 6 years
Future value factor at 2% for 6 years = 1.126
Value of investment at the end of 6 years = $4,504 ($4,000 * 1.126)
b) Investment = $4,000
Interest rates = from 1% to 6%
Period of investment, t = 5 years
Future value factors are as follows:
Rate per year Future Value Factor Amount
1% 1.051 $4,204 ($4,000 * 1.051)
2% 1.104 $4,416 ($4,000 * 1.104)
3% 1.159 $4,636 ($4,000 * 1.159)
4% 1.217 $4,868 ($4,000 * 1.217)
5% 1.276 $5,104 ($4,000 * 1.276)
6% 1.338 $5,352 ($4,000 * 1.338)
The Fed threw a lot of money at the financial crisis in 2008 to unfreeze credit markets and encourage economic activity. As part of its effort to keep the interest rateâ low, the Fed purchased government bonds worthâ $300 billion between March and September 2009. Byâ October, the Fed heldâ $770 billion in governmentâ securities, nearly double itsâ pre-crisis total. Before theâ crisis, the Fed held mainly governmentâ securities, which it used to control the quantity of money in the economy. Now government securities make up justâ 35% of theâ Fed's balance sheet.
Required:
If the Fed purchased the government securities on the openâ market, explain why the purchase ofâ $300 billion of government securities would influence the interest rate.
Answer:
The actions of the Fed in 2009 are consistent with an expansionary monetary policy and this policy reduces or keeps interest rates low.
When the Fed bought that many government securities, they flooded the economy with $300 billion in cash. This cash would make its way into the pockets of people and into their bank accounts as savings.
With that many savings, banks would have much more money to loan out to people and as a result of this increase in the supply of loanable funds, interest would fall in order to entice people to borrow more of these excess funds.
An analyst prepares the following common-size income statements for Perez Company: 20X1 20X2 20X3 Sales 100% 100% 100% Cost of goods sold 50% 52% 53% Selling and administrative expense 16% 12% 9% Interest income 4% 4% 4% Pretax income 30% 32% 34% Income tax expense 15% 16% 17% Net income 15% 16% 17% Based only on this information, Perez's improving net profit margin is most likely a result of:
Answer:
Perez Company
Based only on this information, Perez's improving net profit margin is most likely a result of:
Decreasing Selling and Administrative Expenses over the years.
Explanation:
a) Data and Calculations:
Perez Company
Common-size Income Statements for three years:
20X1 20X2 20X3
Sales 100% 100% 100%
Cost of goods sold 50% 52% 53%
Selling and administrative expense 16% 12% 9%
Interest income 4% 4% 4%
Pretax income 30% 32% 34%
Income tax expense 15% 16% 17%
Net income 15% 16% 17%
b) A review of the common-size income statement of Perez Company shows that its selling and administrative expenses continued to reduce an average of 300 percentage points year on year. This reduction can be clearly seen in its improved net income, which also continued to improve year on year. However, the improvement was hampered by increasing income tax expense, which witnessed the same increase.
Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project. This is an example of Group of answer choices logrolling. the median voter model. the paradox of voting. the principal-agent problem.
Answer: logrolling
Explanation:
Logrolling simply refers to the exchange of favors specifically. It is the practice of exchanging assistance which is fine usually in politics when each other's proposed legislation is voted for.
Since Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project, this is logrolling.
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 28 is:
Answer:
Debit : Account Payable $1,600
Credit : Discount Received $32
Credit : Cash $1,568
Explanation:
The correct journal entry to record the payment on July 28 includes a Debit to Accounts Payable and Credit to Discount and Cash. Cash should be after returns and discount received.
The North Division of XYZ Corporation had average operating assets of $1,110,000 and net operating income of $295,200 in January. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 20%.
Required:
What was the North Division's residual income in January?
Answer:
$73,200
Explanation:
From the above details, we know that;
Residual income =
[Net operating income - (Average operating assets × minimum rate of return)]
= [$295,200 - ($1,110,000 × 20%)]
= [$295,200 - $222,000]
= $73,200
Therefore, the North division's residual income in January is $73,200
In Multinational Capital budgeting, project cash flows can diverge from parent cash flows because of the following factors, except?
A. Foreign exchange risks.
B. Size of the subsidiary.
C. Political risk and Country risk.
D. The existence of growth options.
E. Cannibalization due to the replacement of exports by local production.
Answer: E. Cannibalization due to the replacement of exports by local production.
Explanation:
Multinational capital budgeting simply means when real productive assets is invested in foreign countries.
In Multinational Capital budgeting, project cash flows can diverge from parent cash flows because of foreign exchange risks, subsidiary size, political and country risk and the existence of growth options.
The cannibalization due to replacement of exports by local production isn't among the factors.
A firm that operates outside of a trading bloc will likely face the improved position of competitors within the trading bloc. True False
Answer:
True
Explanation:
In the case when the firm operated outside for a trading bloc due to which it improved the position of the competitors so this should be true as the trading bloc should be the economic integration and it can shape the pattern of thw world trade that protect from non-members imports
So, the given statement is true
The partners share profits and losses in the ratio of 5:3:2, respectively. The partners agreed to dissolve the partnership after selling the other assets for $50,000. On dissolution of the partnership, Janet should receive:
Answer:
$30,000
Explanation:
The computation of the amount received by Janet is given below:
Loss on sale of other assets is
= $150,000 - $50,000
= $100,000
Share of Janet in loss is
= $100,000 × 5 ÷ 10
= $50,000
So,
Janet revised capital balance is
= $80,000 - $50,000
= $30,000
Six engineering students have an idea for a new product that they plan to launch in 3 years after graduation. In three years, each engineer will need $7,500 to begin the venture. How much should be invested by each student each year if the interest rate is 6%
Answer:
Annual deposit= $2,355.82
Explanation:
Giving the following information:
Number of periods (n)= 3 years
Future Value (FV)= $7,500
Interest rate (i)= 6%
To calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (7,500*0.06) / [(1.06^3) - 1]
A= $2,355.82
Kandy Kane Corporation has income before taxes of $400,000 and a loss from discontinued operations pretax of $100,000. If the income tax rate is 25% on all items, the income statement should show income tax expense of
Answer:
The income tax expense = $100000
Explanation:
Below is the given values:
Income before the taxes = $400000
Loss discontinued = $100000
Income tax rate = 25%
In order to calculate the income tax expense, just find the 25% of the income before tax and the resulting answer will be the income tax expense.
The income tax expense = 25% x 400000
The income tax expense = $100000
Despite aggressive campaigns to attract customers with lower mobile phone prices, Telenor- has
been losing large number of monthly subscribers. Management wants to know why so many
customers are leaving Telenor and what can be done to entice them back. Are customers
deserting because of poor customer services, uneven network coverage, or wireless service
charges? How can the company use information systems to help find the answer? What
management decisions could be made using information from these systems?
Answer:
the company should do research and find out why costomer are decreasing ,or do surveys, interview
Explanation:
the company must upgrade the service that it way offering before
Splish Brothers Inc. uses a perpetual inventory system. Data for product E2-D2 include the following purchases.
Date Number of Units Unit Price
May 7 105 $7
July 28 63 18
On June 1, Splish Brothers sold 55 units, and on August 27, 84 more units. Prepare the perpetual inventory schedule for the above transactions using moving average cost.
Answer:
Splish Brothers Inc.
Perpetual Inventory Schedule using moving average costs:
Date Description Number Average Cost Total Cost Cost
of Units Balance
May 7 Purchase 105 $7 $735 $735
June 1 Sales (55) $7 385 350
July 28 Purchase 63 $18 1,134 1,484
August 27 Sales (84) $13.1327 1,103 381
Explanation:
a) Data and Calculations:
Date Number of Units Unit Price Total Costs
May 7 Purchase 105 $7 $735
June 1 Sales (55) $7 385
July 28 Purchase 63 $18 1,134
August 27 Sales (84) $13.1327 1,103
Cost of goods sold = $1,488 ($385 + $1,103)
Ending inventory = $381
Journ Co. purchased short-term investments in available-for-sale securities at a cost of $52,000 on November 25, 2017. At December 31, 2017, these securities had a fair value of $48,800. This is the first and only time the company has purchased such securities.
Required:
a. Prepare the November 25, 2017, entry to record the purchase of securities.
b. Prepare the December 31, 2017, year-end adjusting entry for the securities’ portfolio.
c. For each account in the entry for part 2, explain how it is reported in financial statements.
d. Prepare the April 6, 2018, entry when Journ sells one-half of these securities for $26,000.
Answer:
Journ Co.
Journal Entries:
a. November 25, 2017:
Debit Investments in available for sale securities $52,000
Credit Cash $52,000
To record the purchase of available for sale securities.
b.
December 31, 2017:
Debit Unrealized loss on available for sale securities $3,200
Credit Investments in available for sale securities $3,200
To record the adjusting entry for the securities.
c. The unrealized loss on available for sale securities of $3,200 ($52,000 - $48,800) will be reported in the income statement as unrealized loss in the OCI section. In the balance sheet, the investment will be reported at $48,800. This adjustment does not affect the cash flows statement.
d.
April 6, 2018:
Debit Cash $26,000
Credit Investments in available for sale securities $26,000
To record the sale of one-half of the securities.
Explanation:
a) Data and Analysis:
November 25, 2017: Investments in available for sale securities $52,000 Cash $52,000
December 31, 2017: Unrealized loss on available for sale $3,200 Investments in available for sale securities $3,200
April 6, 2018: Cash $26,000 Investments in available for sale securities $26,000
You run a hospital with 100 rooms. Fixed daily cost is $935.00 which includes staff salary, property charges, maintenance etc. Variable cost per room is $10.00 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $77.00 per room per day. You sold 40.00 rooms today, how much profit/loss did you earn for today.
Answer: $1,745
Explanation:
Profit ( loss) = Sales - Fixed costs - Variable costs
Sales = Rate per room * number of rooms rented
= 77 * 40
= $3,080
Variable costs = 40 * 10 per room
= $400
Profit (loss) = 3,080 - 935 - 400
= $1,745
The ending inventory of Sandie’s Candies is overstated by $75,000 at December 31, 20x8. What is the effect on 20x8’s net income, assuming that no other inventory errors have occurred during 20x8?
a. $150,000 overstated
b. $75,000 understated
c. no effect
d. $75,000 overstated
Answer:
$75,000 overstated
Explanation:
An overstatement of a year's ending inventory, absent any other errors, will lead to a decrease in Cost of Goods Sold (COGS), and an increase in Net Income.
When evaluating special offer decisions, management should consider: (Check all that apply.) Multiple select question. historical costs. available capacity. incremental revenues. existing sales. sunk costs. incremental costs.
Answer:
1. incremental revenues and
2. incremental costs
Explanation:
Only relevant items are considered when making a decision. Relevant means that a Cost or Income would change as a result of a decision made today. Thus, when evaluating special offer decisions, management should consider: incremental revenues and incremental costs.
Answer:
incremental costs
Incremental revenues
Existing sales
Available capacity
Explanation:
uppose you invest, every month, in an annuity that pays 3% interest, compounded monthly. After 25 years, you have $550,000. How much money do you earn from interest
Answer: $180,046
Explanation:
First find the annuity that was invested monthly that yielded $550,000.
Interest rate = 3%/12 months = 0.25%
Period = 25 * 12 = 300 months
Future value of annuity = Annuity * ( ( 1 + rate) ^ no. of periods - 1) / rate
550,000 = Annuity * ( ( 1 + 0.25%)³⁰⁰ - 1 ) / 0.25%
550,000 = Annuity * 446
Annuity = 550,000 / 446
Annuity = $1,233.18
Without compounding, investing $1,233.18 per month would have yielded:
= 1,233.18 * 300 months
= $369,954
Money earned from interest is:
= 550,000 - 369,954
= $180,046
relationship between short and long run in Philips curve
Answer:
In the short-run, inflation and unemployment are inversely related; as one quantity increases, the other decreases. In the long-run, there is no trade-off. In the 1960's, economists believed that the short-run Phillips curve was stable.
Explanation:
https://courses.lumenlearning.com/boundless-economics/chapter/the-relationship-between-inflation-and-unemployment/
Market efficiency is probably the most controversial concept in finance. Even recent winners of the Nobel Prize in Economics come down on opposite sides of the issue. Nonetheless, it is important for you to grapple with this idea. It has very important practical implications for investment decisions, including (especially) for your personal investment decision. In particular, should you pursue active or passive strategies
Answer:
Active strategies should be pursued when the market is more volatile, with larger fluctuations over a shorter period of time, that require a more active management of a portfolio, in order to take advantage of fast changing positions in different assets, and also in order to avoid possible losses due to staying in particular positions for too long.
Passive strategies is more long-term focused, and should be pursued when the economy is more stable. Passive strategies should be analyzed carefully before execution because once the passive investment is made, the idea is to keep the position for a long period of time instead of buying and selling constantly as in a active strategy.
Corn Dog Corp expects net income next year to be $609,000. Inventory and accounts receivable will have to be increased by $302,000 to accommodate this sales level. Corn Dog will pay dividends of $403,000. How much external financing will Corn Dog need assuming no organically generated increase in liabilities
Answer:
$96,000
Explanation:
Increase in current assets = $302,000
Retained earnings = Net income - Dividends
Retained earnings = $609,000 - $403,000
Retained earnings = $206,000
External financing needed = Increase in current assets - Retained earnings
External financing needed = $302,000 - $206,000
External financing needed = $96,000
SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,828,000 Cost of goods sold 991,000 Gross profit 837,000 Operating expenses Salaries expense $ 245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses—Patents 4,200 Utilities expense 18,125 361,660 475,340 Gain on sale of equipment 6,200 Net income $ 481,540 Accounts receivable $ 30,500 increase Accounts payable $ 12,500 decrease Inventory 25,000 increase Salaries payable 3,500 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Statement of Cash Flows (partial)
Cash flows from operating activities
Net income $481,540
Adjustments to reconcile net income to
net cash provided by operating activities
Income statement items not affecting cash
Depreciation expense $44,200
Gain on sale of equipment -$6,200
Amortization expenses–Patents $4200
Changes in current operating
assets and liabilities
Decrease in accounts payable -$12,500
Decrease in salaries payable -$3,500
Increase in accounts receivable -$30,500
Increase in Inventory -$25,000
Net changes -$29,300
Cash flows from operating activities $452,240
Suppose you have $10,000 in savings when the price level index is at 100. Instructions: Enter your responses rounded to the nearest whole number. a. What is the real value of your savings if the price level increases by 6 percent for the year
Answer: $9091
Explanation:
The real value of the savings if the price level increases by 6 percent for the year will be calculated thus:
Real Value = Nominal Value × CPI of previous year / CPI of current year
The CPI of current year will be:
= 100 + (100 × 10/100)
= 110%
Then, the real value will be:
= $10000 × 100/ 110
= $9091
E Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 54,000 units per month is as follows: Per Unit Direct materials $ 49.60 Direct labor $ 9.50 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 20.10 Variable selling & administrative expense $ 4.60 Fixed selling & administrative expense $ 22.00 The normal selling price of the product is $114.10 per unit. An order has been received from an overseas customer for 3,400 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.60 less per unit on this order than on normal sales. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $90.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:
Answer: $91120
Explanation:
The The monthly financial advantage (disadvantage) for the company will be calculated thus:
Incremental revenue = (3400 × $90.40) = $307360
Less: Incremental Cost
Direct material (3400 × $49.60) = $168640
Direct labor (3400 × $9.5) = $32300
Variable manufacturing overhead = (3400 × $2.5) = $8500
Variable selling & administrative expense = (3400 × $2) = $6800
Total incremental Cost = $216240
Therefore, the monthly financial advantage will be:
= $$307360 - $216240
= $91120
Decision tree probabilities are primarily used to a.find overlooked choices to the problem. b.analyze more complex problems and to identify an optimal sequence of decisions. c.analyze less complex problems while identifying the optimal sequence of decisions. d.None of these choices are correct.
Answer:
b.analyze more complex problems and to identify an optimal sequence of decisions.
Explanation:
The probabilities of the decision tree should be applied in order to have an analyse for more problems that are complex in nature also it helps in identifying the optimal sequence for the decisions
So as per the given scenario, the option b is correct
And, the remaining of the options seems wrong
b. Analyze more complex problems and to identify an optimal sequence of decisions.
It is advisable to use the decision tree's probability to analyze more complicated problems because they aid in determining the best order for making judgments.
Therefore, based on the scenario stated, option b is appropriate.
Additionally, the remaining solutions seem flawed.
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